TopClassActions.com reports the two background check firms – both units of risk assessment services provider Verisk Analytics Inc. – were accused “of violating the FCRA by providing incorrect, outdated or incomplete information to potential employers.” The two companies also failed to provide “consumers with copies of their consumer reports before delivering them to prospective employers.” The two defendants have denied all allegations in the class action lawsuits, TopClassActions.com reports.

The FCRA requires Consumer Reporting Agencies (CRAs) – another term for background check firms – “to create policies that are fair and equitable to consumers with regard to the collection, dissemination and use of their consumer and credit information.” The lawsuits allege both companies “fail to use ‘reasonable procedures’ necessary to ensure the ‘maximum possible accuracy’ of the reports they sell” and one failed to notify consumers when compiling and selling a report, TopClassActions.com reports.

The plaintiffs filing the class action lawsuits were seeking a statutory damage award between $100 and $1,000 as permitted under the FCRA, TopClassActions.com reports. ‘Class Members’ would include U.S. residents “who were the subject of one or more consumer reports provided to a third party” by the two companies for employment purposes “which contained a ‘Criminal SuperSearch’ result reflecting an arrest or conviction between April 16, 2010 and Sept. 16, 2013,” according to TopClassActions.com. As part of the settlement, the defendant background firms denied any liability.

Founded by safe hiring expert Attorney Les Rosen in 1997, Employment Screening Resources® (ESR) – ‘The Background Check Authority®’– provides accurate and actionable information that empowers employers to make informed hiring decisions for the benefit of their organizations, employees, and the public. CEO Rosen literally wrote the book on background checks with “The Safe Hiring Manual” and ESR is accredited by The National Association of Professional Background Screeners (NAPBS), a distinction held by a small percent of screening firms. Employers choosing ESR know they have selected an agency meeting the highest industry standards. To learn more about ESR, visit http://www.esrcheck.com or call toll free 888.999.4474.